Very often, customers get frustrated and dissatisfied with the bunches of questions in customer satisfaction surveys. As life is becoming faster, marketers are always trying to search for new tools that save time and effort to make their marketing more and more effective. Net Promoter Score (NPS) is the latest concept that allows marketers to measure customer satisfaction just by asking the customers one question. NPS also equips the managers to create a focused strategy that generates more promoters for the organization.

Modern business leaders often believe that there are two basic requirements for growth i.e., profitable customers and happy customers. Everyone knows how to measure profits, but measurement of customer happiness is very vague in the statistics of customer satisfaction. Conventional customer satisfaction measures are less reliable as there is little connection between satisfaction rate and the company's growth. Customer retention is thought of as the key for ensuring success in a market filled with cut-throat competition. It is claimed by Reichheld and Sasser (1990)1 that a 5% improvement in customer retention can cause an increase in profitability between 25% and 85% (in terms of net present value) depending upon the industry. Same time, two conditions must be satisfied before customer makes a personal referral. They must believe that the company is offering and delivering superior value in terms of price, quality, features, functionality, ease of use and other practical factors and they also believe that the company knows and understands them, values them, listens to them and shares their ideology.

Whenever a customer feels misled, mistreated, ignored or coerced, then profits earned from that customer are bad. Bad profits come from unfair or misleading pricing. Bad profits arise when companies make money by delivering miserable experiences to their customers. It is all about extracting value from customers, not creating and delivering value to the customers. When companies push undervalued and overpriced products and services to the customers, it generates bad profits. The cost of bad profits extends beyond a company's boundary. Sooner or later, customers who feel frustrated and disappointed get attracted by the competitors offering similar products and services.

Advertising Express Magazine, Net Promoter Score, Customer Satisfaction, Customer Retention, Communication Media, Traditional Accounting Methods, Marketing Research Department, Promotional Strategy, Multinational Company, Corporate Strategies, Customer Loyalty.